Tax profiling to detect evasion: Finmin

The finance ministry has said that it is using tax profiling in many jurisdictions as an anti-evasion measure whenever there is information on large financial transactions that are unreported or huge tax evasion detected.

Income tax officials then attempt to bring togther all financial information about the person from sources such as Annual Information Return, Banking Cash Transaction Tax, Securities Transaction Tax, Income Tax, Wealth Tax and TDS returns.

"The object is to construct a complete financial profile - income, expenditure and investment - of a person," official sources said.